As the government shut down continues, Congress has the debt ceiling the contend with by October 17, 2013, or our country will lose the ability to borrow. It almost seems “subprime” to me that our country has to continue to increase the amount of funds we borrow because our country went out to dinner and two glasses of wine (as President Obama explained it in a speech last week). Mortgage rates continue to be at lower levels. Once the government is back to work and the debt ceiling issue is resolved, in my opinion, we may see mortgage rates pop up.
Meanwhile, the Jobs Report was not released last week and it looks like the Producer Price Index (PPI) and Retail Sales reports will not be released as these are all government reports. Wednesday, we the Fed Minutes will be released.
Here are some of the economic indicators scheduled to be released this week:
- Wednesday, October 9: FOMC Minutes
- Thursday, October 10: Initial Jobless Claims
- Friday, October 11: Producer Price Index, Retail Sales and Consumer Sentiment (UoM)
NOTE: Monday, October 14, 2013 is Columbus Day, a Federal holiday and is not counted as a “right of rescission” day for refinances.
As I write this post, 8:00 am on October 7, 2013, the DOW is down 80 points at 14, 992 and for a 30 year fixed rate conforming loan, I’m quoting:
- 4.125% (apr 4.311%) priced with 1.375 points
- 4.250% (apr 4.375%) priced with 0.588 points
- 4.375% (apr 4.446%) priced with 0.002 points
The above quote is based on a purchase of a single family detached dwelling in greater Seattle with a sales price of $500,000 and a loan amount of $400,000 with 740 or higher credit scores closing by November 29, 2013. Remember, mortgage rates change constantly and rates quoted in this post may have changed by the time I published this or by the time your are reading this. If you would like me to provide you with a free mortgage rate quote for your home located anywhere in Washington state, where I’m licensed, click here.
Compared to last week’s mortgage rate post, mortgage rates are pretty close to unchanged.
If I can help you with your mortgage needs for your residential purchase or refinance for your Washington state home, please let me know. Our company is still offering mortgage loans during this mortgage shutdown.
Great article Rhonda. What an interesting market we are in. Rates are being impacted by the Fed and their decision to stay in the bond market and acting as a substantial mortgage bond buyer as well as the gov’t shutdown and pending debt ceiling deadline. I do not see healthy unemployment in the near term which according to the Fed will translate to more Fed support and more downward pressure on rates.